ROI in the Customer Experience <br />Colin Shaw<br />Best Selling CE Author <br />CEO, Beyond Philosophy<br />
1. Viewer Window<br />2. Control Panel<br />GoToWebinar Example Interface<br />Webinar Interface Review<br />Beyond Philos...
3<br />Beyond Philosophy © All rights reserved. 2001-2011<br />The Beyond Philosophy Perspective<br />Customer Experience ...
4<br />We are Proud to Have Helped Some Great Organizations…<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
Why is this such a challenge….<br />It’s a religion…<br />Hearts and Minds, and people’s understanding of the Customer Exp...
6<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
When in Rome…<br />7<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
The ways of getting to ROI…<br />General models<br />Company specific research<br />Other company case studies<br />Cost s...
9<br />Source: Watermark Consulting 2010.<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
4,700 consumer surveys<br />Forrester analysis shows that good customer experience correlates to:<br />Consumers’ willingn...
11<br />Beyond Philosophy © All rights reserved. 2001-2011<br />Case Study:<br />Enterprise with 2 million customers<br />...
The ways of getting to ROI…<br />General models<br />Company specific research<br />Other company case studies<br />Cost s...
Middle East Telecommunications Company<br />13<br />Product quality versus<br />emotional engagement<br />Beyond Philosoph...
Priority Order of the Attributes (Combined desirability and current value) – Premium Consumers <br />14<br />Desired by Cu...
The ways of getting to ROI…<br />General models<br />Company specific research<br />Other company case studies<br />Cost s...
16<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
17<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
Improving Customer Satisfaction: Memorial Herman Hospital System (MHHS)<br />18<br />Beyond Philosophy © All rights reserv...
Customer Satisfaction drives a large percentage of government sponsored reimbursement  for hospitals in the USA
This reimbursement is crucial for hospitals to recoup the cost of care to indigent population s for which they are require...
Roughly, every percentage point increase  in PSAT above 75% represents $1.4m
MHHS provides more care to indigents than any of its competitors .
A typical Hospital had Patient Satisfaction scores of about 81%.   </li></ul>The Change<br /><ul><li>Beyond Philosophy red...
The end result was a revamp of MHHS’  inpatient and outpatient Caner, Heart & Lung and Emergency Room experiences .</li></...
91% in poor performing hospitals
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  • THANK YOU! We enjoyed the opportunity to interact with you today.Please complete the SHORT survey that includes an opportunity to receive a copy of this webinar information. We appreciate your feedback as we strive to continually improve our customer experience.Our next webinar will be held on April 15th . If you’d like to participate, please let us know.Should you have questions or want additional information, please contact us.
  • Roi of ce webinar

    1. 1. ROI in the Customer Experience <br />Colin Shaw<br />Best Selling CE Author <br />CEO, Beyond Philosophy<br />
    2. 2. 1. Viewer Window<br />2. Control Panel<br />GoToWebinar Example Interface<br />Webinar Interface Review<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2<br />
    3. 3. 3<br />Beyond Philosophy © All rights reserved. 2001-2011<br />The Beyond Philosophy Perspective<br />Customer Experience is all we do!<br />Thought leadership is our differentiator<br />Offices in London, Atlanta with Partners in Europe & Asia<br />Links with <br />Academia<br />Focus on the emotional side of the Customer Experience<br />
    4. 4. 4<br />We are Proud to Have Helped Some Great Organizations…<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    5. 5. Why is this such a challenge….<br />It’s a religion…<br />Hearts and Minds, and people’s understanding of the Customer Experience are the root cause of people’s lack of acceptance…<br />5<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    6. 6. 6<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    7. 7. When in Rome…<br />7<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    8. 8. The ways of getting to ROI…<br />General models<br />Company specific research<br />Other company case studies<br />Cost savings<br />8<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    9. 9. 9<br />Source: Watermark Consulting 2010.<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    10. 10. 4,700 consumer surveys<br />Forrester analysis shows that good customer experience correlates to:<br />Consumers’ willingness to repurchase <br />Reluctance to switch<br />Likelihood to recommend firms <br />Correlation between customer experience and loyalty increased in every industry over the last year. <br />Source: Forrester. February 18th 2009.<br />Correlation between customer experiences and loyalty of 100 US companies<br />10<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    11. 11. 11<br />Beyond Philosophy © All rights reserved. 2001-2011<br />Case Study:<br />Enterprise with 2 million customers<br />Revenue = $200,000,000 per year <br />Average Revenue per customer = $100 per year<br />Sources: Cherry Tree Research, Bain & Co., McKinsey, Harvard Business Review and Gartner<br />2,992 customers<br />$299,200<br />At risk — 34%Issue not resolved<br />2,464 customers<br />$246,400<br />Complain2%<br />Defect — 28%<br />8,800<br />customers<br />Poor experience22%<br />Resolved — 38%<br />440,000<br />customers<br />Do notcomplain98%<br />At risk — 55%Decline in wallet<br />share<br />237,160 customers<br />$23,716,000<br />Positiveexperience 78%<br />431,200<br />customers<br />194,040 customers<br />$19,404,000<br />Defect — 45% <br />
    12. 12. The ways of getting to ROI…<br />General models<br />Company specific research<br />Other company case studies<br />Cost savings<br />12<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    13. 13. Middle East Telecommunications Company<br />13<br />Product quality versus<br />emotional engagement<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    14. 14. Priority Order of the Attributes (Combined desirability and current value) – Premium Consumers <br />14<br />Desired by Customer<br />Effect on Value<br />Top Ten<br />+<br />Relative Magnitude<br />-<br />0<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    15. 15. The ways of getting to ROI…<br />General models<br />Company specific research<br />Other company case studies<br />Cost savings<br />15<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    16. 16. 16<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    17. 17. 17<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    18. 18. Improving Customer Satisfaction: Memorial Herman Hospital System (MHHS)<br />18<br />Beyond Philosophy © All rights reserved. 2001-2011<br />The Context<br /><ul><li>MHHS is a system of 11+ hospitals (3,500 beds) with 20,000 employees
    19. 19. Customer Satisfaction drives a large percentage of government sponsored reimbursement for hospitals in the USA
    20. 20. This reimbursement is crucial for hospitals to recoup the cost of care to indigent population s for which they are required to provide service for.
    21. 21. Roughly, every percentage point increase in PSAT above 75% represents $1.4m
    22. 22. MHHS provides more care to indigents than any of its competitors .
    23. 23. A typical Hospital had Patient Satisfaction scores of about 81%. </li></ul>The Change<br /><ul><li>Beyond Philosophy redesigned the MHHS experience via Moment Mapping and Emotional Signature and practitioner training
    24. 24. The end result was a revamp of MHHS’ inpatient and outpatient Caner, Heart & Lung and Emergency Room experiences .</li></ul>The Benefit<br /><ul><li>On average, average Patient satisfaction scores in the hospitals increased by:
    25. 25. 91% in poor performing hospitals
    26. 26. 12% in great performing hospitals
    27. 27. This translates to an additional $10m revenue</li></li></ul><li>What’s Next When You’re on Top of Your Game: Overbury<br />19<br />Beyond Philosophy © All rights reserved. 2001-2011<br />The Context<br /><ul><li>Overbury started their “Perfect delivery” Customer Experience initiative aiming to deliver their projects on time, snag free and delight clients
    28. 28. Revenues increased by 40% as “perfect delivery” was increased from 24% to 60% in the first year of the project
    29. 29. In 7 years their revenue increase by 170% and they moved from 4th to 1st in market share
    30. 30. The fast growth brought some problems:
    31. 31. competition began to copy “perfect delivery” and was catching up
    32. 32. the perfect delivery of projects got stalled
    33. 33. The company was on top of its game but was facing the possibility of a downward trend
    34. 34. To keep up the upward trend they needed to take their customer experience to the next level
    35. 35. As a result the “Customer Experience Vision” initiative was launched based on 3 pillars:
    36. 36. Product – Make it
    37. 37. Process – Make it simple
    38. 38. People – Make it engaging
    39. 39. Beyond Philosophy addressed the formulation of the new Customer Experience strategy by conducting:
    40. 40. Internal research to understand the current thinking
    41. 41. Quantitative research and analysis to get customer insights and generate hypothesis
    42. 42. Data analytics to test the hypothesis with customers and generate statements</li></ul>The Change<br /><ul><li>xxx
    43. 43. xxx
    44. 44. xxx
    45. 45. xxx
    46. 46. Annual revenue increased by 15%
    47. 47. Increase “perfect Delivery” from 91% to 96%
    48. 48. The Net Promoter Score has increased significantly to reach 70% (one of the highest not only in the sector but also worldwide)</li></ul>The Benefit<br />
    49. 49. Differentiating in a CommoditiedMarket:Comet<br />20<br />Beyond Philosophy © All rights reserved. 2001-2011<br />The Context<br /><ul><li>Commoditised market with no differentiation: customer’s perception was that all carry the same range of products, at the same price and same service
    50. 50. Lack of trust – customers felt a duty of due diligence to shop around
    51. 51. Poor service – Technicians didn’t engage with customers; Salespersons were paid on commission; they would either pounce on customers, lurk over their shoulder or chat at the till</li></ul>The Change<br /><ul><li>Beyond Philosophy designed a differentiation strategy based on Customer Experience. With that purpose in mind were conducted:
    52. 52. Philosopher’s day workshop as training for the senior management to get people on top on the right track for the new strategy
    53. 53. Best Practice Study Tour to get inspiration form enlightened organizations
    54. 54. Customer Mirrors to identify break points in the experience
    55. 55. Moment Mapping to design the new experience
    56. 56. Over the project the client understood that for the customers getting their new TV or gadget was a very emotional experience as well as letting someone into their house
    57. 57. Some of the game changing ideas that came from this engagement were around creating a “Father Christmas” moment when technicians went to deliver and install the product..
    58. 58. The store experience was also addressed in 41 pilot stores.
    59. 59. The initial feedback was excellent and the programmes was rolled out in 200+ stores
    60. 60. xxx
    61. 61. xxx</li></ul>The Benefit<br /><ul><li>Increased “like for like” sales by 3%
    62. 62. Reduced customer complaints by 20%
    63. 63. Levels of trust increased by 10%</li></li></ul><li>The ways of getting to ROI…<br />General models<br />Company research specific<br />Other company case studies<br />Cost savings<br />21<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    64. 64. When Product Innovation is Not an Option: Yorkshire Water <br />22<br />Beyond Philosophy © All rights reserved. 2001-2011<br /><ul><li> Bottom of the OFWAT (the regulator) Customer Service League Table (being on top of it means you can charge premiums)
    65. 65. Low customer perceptions (after 1995 water shortage fiasco and managers bonuses scandal)
    66. 66. Increasing customer expectations
    67. 67. Facing the threat of competition
    68. 68. Toughest pricing review since privatisation in 1989</li></ul>The Context<br /><ul><li>One of the key recommendations was to remove measures such as “call duration” and “calls waiting”, so agents can focus on problem resolution and develop a caring attitude
    69. 69. To close an issue to customer’s satisfaction on the first call costs £2-8 compared with £60-70 to send an engineer in a van
    70. 70. Beyond Philosophy facilitated the development of a customer experience via
    71. 71. Workshops with the senior leader to define a new Customer Experience Vision and Strategy
    72. 72. Training the call centre and field work staff on how to implement the new initiatives</li></ul>The Change<br />The Benefit<br /><ul><li>Ranked 1st in OFWAT Customer Service League table (currently is second)
    73. 73. “Yorkshire Water has turned itself from one of the most ridiculed companies of the late 1990’s to one of the most respected” - Financial Times, December 2002
    74. 74. £8.5m of cost savings as a direct result of Customer Experience improvements such as:
    75. 75. 40% reduction in written complaints
    76. 76. 20% reduction in repeat calls
    77. 77. Calls closed on first contact > 70%
    78. 78. 50% reduction of unnecessary field jobs
    79. 79. Appointments within 2hrs - 98%
    80. 80. Improved overall Customer Satisfaction from 53%-91%</li></li></ul><li>Improving the CE can also lead to lower costs:Case Study 1: Major UK Call Centre Cost Issue<br />23<br />Beyond Philosophy © All rights reserved. 2001-2011<br />Cost Issue:Customer callbacks driving costs skyward, CSAT is good<br />Customer calls to request time sensitive document<br />75 % of customers call back within 3 days to check on status<br />Qualitative Research suggested that customers were really concerned with a definitive answer, not “5 days”<br />Previous (rational) research showed customer concerned with “3 days”<br />Thus, company policy and procedure stated “3-4 days”<br />Actions<br /><ul><li>Agents trained on what customers really wanted
    81. 81. Script guidelines changed to “You will have it within 7 days”</li></ul>However, agents knew from customers that document often NOT received within 3-4 days<br />Result: Call backs drop dramatically; to 3% from 75% within weeks<br />Agent thus responds “You should have it within 3-4 days”.<br />Agents wanted to be truthful.<br />
    82. 82. Summary…<br />Four methods for producing ROI<br />Remember that this is about Hearts and Minds<br />When in Rome….<br />24<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    83. 83. Questions?<br />25<br />Beyond Philosophy © All rights reserved. 2001-2011<br />www.beyondphilosophy.com<br /><ul><li>colin.shaw@beyondphilosophy.com</li></ul>London Office: 0207-917-1717<br />Atlanta Office: 1-678-638-6162<br />
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